<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934
FOR QUARTER ENDED MARCH 31, 1995
COMMISSION FILE NUMBER 2-94725
REAL AMERICAN PROPERTIES
(FORMERLY, HUTTON/REAL AMERICAN PROPERTIES)
A CALIFORNIA LIMITED PARTNERSHIP
I.R.S. EMPLOYER IDENTIFICATION NO. 95-3906164
9090 Wilshire Blvd., Suite 201
Beverly Hills, Calif. 90211
Registrant's Telephone Number,
Including Area Code (310) 278-2191
Securities Registered Pursuant to
Section 12(b) or 12(g) of the Act
NONE
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed with the Commission by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding twelve months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes X No
--- ---
<PAGE> 2
REAL AMERICAN PROPERTIES
(A CALIFORNIA LIMITED PARTNERSHIP)
INDEX TO FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 1995
PART I. FINANCIAL INFORMATION (UNAUDITED)
<TABLE>
<S> <C>
Item 1. Financial Statements
Balance Sheets, March 31, 1995 and December 31, 1994 . . . . . . . . . . . . . . . . . . . . 1
Statements of Operations,
Three Months Ended March 31, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . 2
Statement of Partners' Equity,
Three Months Ended March 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Statements of Cash Flows
Three Months Ended March 31, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . 4
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Item 2. Management's Analysis and Discussion of Financial
Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
</TABLE>
<PAGE> 3
REAL AMERICAN PROPERTIES
(A CALIFORNIA LIMITED PARTNERSHIP)
BALANCE SHEETS
MARCH 31, 1995 AND DECEMBER 31, 1994
ASSETS
<TABLE>
<CAPTION>
1995 1994
(Unaudited) (Audited)
------------ -----------
<S> <C> <C>
RENTAL PROPERTY, at cost
Land $ 2,170,920 $ 2,170,920
Buildings 12,360,101 12,360,101
Furniture and equipment 835,000 835,000
----------- -----------
15,366,021 15,366,021
Less accumulated depreciation and insurance proceeds (4,326,281) (4,291,410)
----------- -----------
11,039,740 11,074,611
----------- -----------
CASH AND CASH EQUIVALENTS 545,312 659,440
----------- -----------
RESTRICTED CASH 3,874,122 3,861,813
----------- -----------
INVESTMENT IN LIMITED PARTNERSHIP
OTHER ASSETS:
Due from affiliated rental agent 122,468 136,340
Other receivables and prepaid expenses 36,887 37,447
----------- -----------
159,355 173,787
----------- -----------
$15,618,529 $15,769,651
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES:
Mortgage notes payable $ 9,677,395 $ 9,687,439
Accounts payable and accrued expenses 1,140,375 984,180
Tenant security deposits 26,132 26,132
Liability for earthquake loss 3,993,515 3,988,580
----------- -----------
14,837,417 14,686,331
----------- -----------
PARTNERS' EQUITY 781,112 1,083,320
------------ -----------
$15,618,529 $15,769,651
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
1
<PAGE> 4
REAL AMERICAN PROPERTIES
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(Unaudited)
<TABLE>
<CAPTION>
Three months Three months
ended ended
March 31, 1995 March 31, 1994
-------------- --------------
<S> <C> <C>
RENTAL OPERATIONS
Revenues
Rental income $ 164,078 $ 217,146
Other income 8,975 13,805
--------- ---------
173,053 230,951
--------- ---------
Expenses
Operating expenses 153,253 164,536
Management fee 18,724 13,395
Depreciation 34,871 34,871
General and administrative 9,261 12,760
Interest expense 234,500 90,344
Provision for earthquake loss - 250,000
--------- ---------
450,609 565,856
--------- ---------
Loss from rental operations (277,556) (334,905)
--------- ---------
PARTNERSHIP OPERATIONS
Interest and other income 748 3,328
--------- ---------
Expenses
General and administrative 10,490 12,027
Professional fees 14,910 19,589
--------- ---------
25,400 31,616
--------- ---------
Loss from partnership (24,652) (28,288)
--------- ---------
NET LOSS $(302,208) $(363,193)
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE> 5
REAL AMERICAN PROPERTIES
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENT OF PARTNERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
General Limited
Partners Partners Total
---------- ---------- -----------
<S> <C> <C> <C>
PARTNERSHIP INTERESTS
at March 31, 1995 1 21,500 21,501
========= ========== ==========
BALANCE (DEFICIENCY),
at January 1, 1995 $(175,228) $1,258,548 $1,083,320
Net loss for the three months
ended March 31, 1995 (3,022) (299,186) (302,208)
--------- ---------- ----------
BALANCE (DEFICIENCY),
at March 31, 1995 $(178,250) $ 959,362 $ 781,112
========= ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 6
REAL AMERICAN PROPERTIES
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(Unaudited)
<TABLE>
<CAPTION>
1995 1994
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(302,208) $(363,193)
Adjustments to reconcile net loss to cash
provided by (used in) operating activities:
Depreciation 34,871 34,871
Provision for earthquake loss 4,935 250,000
(Increase) decrease in:
Due from rental agent 13,872 9,084
Other receivables and prepaid expenses 560 -
Increase (decrease) in:
Accounts payable and accrued expenses 156,195 3,805
--------- ---------
Net cash used in operating activities (91,775) (65,433)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable (10,044) (9,051)
Increase in restricted cash (12,309) -
--------- ---------
Net cash used in financing activities (22,353) (9,051)
--------- ---------
NET DECREASE IN CASH AND CASH EQUIVALENTS (114,128) (74,484)
CASH AND CASH EQUIVALENTS, beginning of period 659,440 689,136
--------- ---------
CASH AND CASH EQUIVALENTS, end of period $ 545,312 $ 689,329
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 7
REAL AMERICAN PROPERTIES
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL
The information as of December 31, 1994 and the following notes to the
financial statements are condensed from the audited annual financial
statements; accordingly, the financial statements included herein should
be reviewed in conjunction with the financial statements and related
notes thereto contained in the Annual Report for the year ended December
31, 1994 of REAL American Properties (the "Partnership") (formerly
Hutton/REAL American Properties). Accounting measurements at interim
dates inherently involve greater reliance on estimates than at year end.
The results of operations for the interim periods presented are not
necessarily indicative of the results for the entire year.
In the opinion of the general partners of the Partnership (the "General
Partners"), the accompanying unaudited financial statements contain all
adjustments (consisting primarily of normal recurring accruals)
necessary to present fairly the financial position of the Partnership as
of March 31, 1995, and the results of operations and changes in cash
flow for the three months then ended.
ORGANIZATION
The Partnership was formed under the California Limited Partnership Act
on March 9, 1984. The Partnership was formed to invest in a diversified
portfolio of apartment complexes and had invested in five residential
apartment projects, one of which was lost in a foreclosure proceeding in
1993. The General Partners are National Partnership Investments Corp.
("NAPICO"), a California corporation, and Real Estate Services XIII Inc.
("Real Estate"), a Delaware corporation. Casden Investment corporation
owns 100% of NAPICO's stock.
The Partnership offered 45,000 limited partnership interests ("Units")
at $1,000 each, of which 21,500 were sold through a public offering.
The terms of the Amended and Restated Certificate and Agreement of
Limited Partnership (the "Partnership Agreement") provide, among other
things, for allocation to the partners of profits, losses and any
special allocations with respect thereto. Under the terms of the
Partnership Agreement, cash available for distribution is to be
allocated 90% to the limited partners as a group and 10% to the general
partners.
Net proceeds from sale or refinancing is distributed 100% to the limited
partners until an amount equal to the aggregate adjusted capital values,
as defined, plus a cumulative non-compounded 8% annual return. The
balance is distributed 85% to the limited partners and 15% to the
general partners.
Losses are allocated 99% to the limited partners and 1% to the general
partners.
5
<PAGE> 8
REAL AMERICAN PROPERTIES
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1995
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
RENTAL PROPERTY AND DEPRECIATION
Rental property is stated at cost. Depreciation is provided on the
straight-line method over the estimated useful lives of the buildings
and equipment.
<TABLE>
<CAPTION>
Asset Estimated Useful Lives
----- ----------------------
<S> <C>
Buildings 30 years
Furniture and equipment 5 years
</TABLE>
On January 17, 1994, the Northridge rental property sustained major
damage due to the severe earthquake in the Los Angeles area. The
current operations of the property have been materially affected since
the Los Angeles County building inspectors have declared the building
unsafe for habitation. Accordingly, the entire property has been
vacated since the earthquake. The property is covered by insurance,
which covers to a limited extent, among other things, property damage
and loss of rentals. In August 1994, a partial settlement for property
damage in the amount of approximately $3,909,000 was allocated to the
Partnership under a master umbrella insurance policy, covering
earthquake damage for this and other properties managed by a related
party. These insurance proceeds plus related interest earned of
$94,814, net of earthquake related costs incurred of $129,692 are
included in restricted cash as of March 31, 1995. In addition, the
Partnership is still negotiating with the insurance company for claims
relating to rental losses and the remaining property damage which is
estimated at approximately $1,250,000, net of the 8.5% independent
adjustor's fee, which has not been reflected in the financial
statements. An amount of approximately $127,000 was accrued on the
financial statements as of December 31, 1994 to provide for the
estimated loss to be incurred by the Partnership. This amount, along
with the insurance proceeds, is included in liability for earthquake
loss on the accompanying balance sheet as of March 31, 1995. In
addition, interest in the amount of approximately $745,000, relating to
the first and second mortgages on the Northridge property, and other
costs of approximately $291,000 have been accrued and included in
accounts payable and accrued expenses as of March 31, 1995 at that date.
The Partnership is continuing negotiations with the first mortgage
lender, who has a security interest in the insurance proceeds, and is
finalizing an agreement as to the disbursement of insurance proceeds, in
the event that the Northridge property is rebuilt. Concurrently
therewith, an application for a new loan with the existing first
mortgage lender is being submitted. The Partnership has submitted
repair design plan and specifications to the Los Angeles Department of
Building and Safety. Upon approval by the City of Los Angeles
Department of Building and Safety, the
6
<PAGE> 9
REAL AMERICAN PROPERTIES
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1995
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
RENTAL PROPERTY AND DEPRECIATION (CONTINUED)
Partnership, the lenders and structural engineers shall determine the
best course of action to pursue. If the insurance proceeds are not
adequate to repair the building, the lender could foreclose on the
building and claim the insurance proceeds held by the Partnership.
Substantially all of the apartment units in the Partnership's apartment
projects are leased on a month-to-month basis.
AMORTIZATION OF LOAN FEES
Loan fees are being amortized on the straight-line method over a
fifteen-year period.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash and bank certificates of
deposit, with an original maturity of three months or less.
NOTE 2 - INVESTMENT IN LIMITED PARTNERSHIP
In September 1992, the Partnership completed an exchange transaction
involving the Del Coronado I and II properties. The Partnership
transferred the Del Coronado properties to an unaffiliated Arizona
limited partnership, 843 South Longmore Limited Partnership, in exchange
for a subordinated 20% limited partnership interest in the Arizona
limited partnership. The investment in the limited partnership is being
carried at a zero balance.
NOTE 3 - MORTGAGE NOTES PAYABLE
Mortgage notes payable consist of notes bearing interest at rates
ranging from 9.25% to 10.7% per annum. Monthly payments of principal
and interest range from approximately $3,400 to $53,500. The notes have
maturity dates from November 1995 to August 1996 and are secured by
deeds of trust on the rental properties.
In February 1994, the Partnership ceased making payments to the mortgage
lender of the Northridge property, pending negotiations regarding the
major damage sustained during the January 17, 1994 earthquake. (see
Note 1).
NOTE 4 - INCOME TAXES
No provision has been made for income taxes in the accompanying
financial statements as such taxes, if any, are the liability of the
individual partners.
7
<PAGE> 10
REAL AMERICAN PROPERTIES
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1995
NOTE 5 - RELATED PARTY TRANSACTIONS
a. Sales commissions were paid to an affiliate of Lehman Brothers
Inc. (formerly E.F. Hutton & Company Inc.) of 8% per unit on units
sold subject to any quantity discounts to individual investors for
substantial purchases. Total sales commissions earned and charged
to partners' equity as offering expenses amounted to $1,720,000.
b. Acquisition fees of $1,793,976 were paid to the general partners
and have been capitalized as part of the acquisition costs of
rental properties in the accompanying financial statements.
c. The Partnership has entered into an agreement with an affiliate of
NAPICO to manage the operations of the two rental properties owned
entirely by the Partnership. The agreement is on a month-to-month
basis and provides, among other things, for a management fee equal
to 5% of gross rentals and other collections. Management fees
charged to rental operations under this agreement were
approximately $19,000 and $13,000 for the three months ended March
31, 1995 and 1994, respectively. The Partnership ceased making
payments under this agreement for one of the rental properties in
1994 as a result of the earthquake (See Note 1). The Partnership
entered into an agreement to pay approximately $2,450 per month
for an eighteen-month period, starting February 1994, to the
affiliate of NAPICO, as compensation for continuing property
management services and reconstruction oversight at the property
damaged by the earthquake. This represents 3.5% of insurance
proceeds allocable to the lost rents, net of the adjustor's fee.
d. The Partnership reimburses NAPICO for certain expenses. The
reimbursement to NAPICO of $3,146 was paid and included in the
Partnership's operating expenses in the first three months of
1995.
NOTE 6 - COMMITMENTS AND CONTINGENCIES
Under the terms of the Partnership Agreement, the Partnership may be
obligated to the General Partners or their affiliates for the following
fees:
a. A liquidation fee equal to 15% of the net proceeds from sale or
refinancing of a project. No part of such fee shall be paid
unless and until the Limited Partners have first received certain
amounts as stated in the Partnership Agreement.
b. Certain other fees may be payable, under certain circumstances, as
described in the Prospectus and the Partnership Agreement.
NOTE 7 - LITIGATION
The General Partners of the Partnership are plaintiffs in various
lawsuits and have also been named as defendants in other lawsuits
arising from transactions in the ordinary course of business. In the
opinion of management and General Partners, the claims will not result
in any material liability to the Partnership.
8
<PAGE> 11
REAL AMERICAN PROPERTIES
(A CALIFORNIA LIMITED PARTNERSHIP)
MARCH 31, 1995
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND
RESULTS OF OPERATIONS
CAPITAL RESOURCES AND LIQUIDITY
RAP received a total of $10,750,000 in subscriptions for units of limited
partnership interests (at $1,000 per unit) during the period September 12, 1985
to February 28, 1986, pursuant to a registration statement on Form S-11.
$10,750,000 in subscriptions were received pursuant to the exercise of warrants
and the sale of additional limited partnership interests from April 1, 1986 to
May 31, 1986.
The Partnership acquired five apartment complexes since inception, one of which
was foreclosed by the lender in 1993. The Partnership remains invested in four
apartment complexes. Two of these remaining buildings were contributed to a
separate limited partnership in 1992.
See "Results of Operations" for discussion on operating cash flows of the
individual properties, and "Liquidity" for the discussion on cash flow trends
expected in the future.
The Partnership's primary sources of funds are income from rental operations
and interest income on money market funds and certificates of deposit.
In 1994 and 1993, the Partnership advanced funds to partially cover the
operating deficits of the West Colonial property in the amount of $16,000 and
$35,000, respectively. Such advances have been funded from the Partnership's
working capital reserve.
RESULTS OF RENTAL OPERATIONS
The Partnership was formed to invest in residential rental properties either
directly or through investments in joint ventures and other partnerships which
will invest in such real estate, as discussed in Item 1.
Rental operations consist primarily of rental income and depreciation expense,
debt service, and normal operating expenses to maintain the properties.
Depreciation is provided on the straight-line method over the estimated useful
lives of the buildings and equipment. Substantially all of the rental units in
the apartment projects are leased on a month-to-month basis.
An annual property management fee, which shall in any event not exceed 5% of
gross revenues from each property under management, is payable to an affiliate
NAPICO on two of the properties.
On January 17, 1994, the Northridge rental property sustained major damage due
to the severe earthquake in the Los Angeles area. The current operations of
the property have been materially affected since the Los Angeles County
building inspectors have declared the building unsafe for habitation.
Accordingly, the entire property has been vacated since the earthquake. The
property is covered by insurance, which covers to a limited extent, among other
things, property damage and loss of rentals. In August 1994, a partial
settlement for property damage in the amount of approximately $3,909,000 was
allocated to the Partnership under a master umbrella insurance policy, covering
earthquake damage for this and other properties managed by a
9
<PAGE> 12
REAL AMERICAN PROPERTIES
(A CALIFORNIA LIMITED PARTNERSHIP)
MARCH 31, 1995
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND
RESULTS OF OPERATIONS (CONTINUED)
RESULTS OF RENTAL OPERATIONS (CONTINUED)
related party. These insurance proceeds plus related interest earned of
$94,818, net of earthquake related costs incurred of $129,692 are included in
restricted cash as of March 31, 1995. In addition, the Partnership is still
negotiating with the insurance company for claims relating to rental losses and
the remaining property damage which is estimated at approximately $1,250,000,
net of the 8.5% independent adjustor's fee, which has not been reflected in the
financial statements. An amount of approximately $127,000 was accrued on the
financial statements as of December 31, 1994 to provide for the estimated loss
to be incurred by the Partnership. This amount, along with the insurance
proceeds, is included in liability for earthquake loss on the accompanying
balance sheet as of March 31, 1995. In addition, interest in the amount of
approximately $745,000, relating to the first and second mortgages on the
Northridge property, and other costs of approximately $291,000 have been
accrued through March 31, 1995, and are included in accounts payable and
accrued expenses as of March 31, 1995 (See Note 3).
The Partnership is continuing negotiations with the first mortgage lender, who
has a security interest in the insurance proceeds, and is finalizing an
agreement as to the disbursement of insurance proceeds, in the event that the
Northridge property is rebuilt. Concurrently therewith, an application for a
new loan with the existing first mortgage lender is being submitted. The
Partnership has submitted repair design plan and specifications to the Los
Angeles Department of Building and Safety. Upon approval by the City of Los
Angeles Department of Building and Safety, the Partnership, the lenders and
structural engineers shall determine the best course of action to pursue. As
compensation for continuing property management services and reconstruction
oversight, the managing agent, which is an affiliate of NAPICO, will be paid a
total of approximately $44,245. This represents 3.5% of the insurance proceeds
allocable to the lost rents (net of the adjustor's fee) for the eighteen-month
period from February 1994 through July 1995. As of March 31, 1995, $27,038 has
been accrued. If the insurance proceeds are not adequate to repair the
building, the lender could foreclose on the building and claim the insurance
proceeds held by the Partnership.
Occupancy at West Colonial Village averaged 92% during the first three months
of 1995, a 3% decrease in occupancy compared to the same period in 1994. The
property operated at a cash deficit of approximately $5,000 (excluding
depreciation and principal payments on the mortgage) during the first three
months of 1995.
Partnership operations consist primarily of interest income earned on
certificates of deposit and other temporary investment of funds not required
for investment in projects. Operating expenses of the Partnership consist
substantially of recurring general and administrative expenses and professional
fees for services rendered to the Partnership.
The Partnership did not make cash distributions during the first three months
of 1995 and does not anticipate making any cash distributions in the future.
10
<PAGE> 13
REAL AMERICAN PROPERTIES
(A CALIFORNIA LIMITED PARTNERSHIP)
MARCH 31, 1995
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As of March 31, 1995, NAPICO was named as a plaintiff or a defendant in several
suits. None of these suits were related to the Partnership.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) No exhibits are required per the provision of item 601 of
regulation S-K
11
<PAGE> 14
REAL AMERICAN PROPERTIES
(A CALIFORNIA LIMITED PARTNERSHIP)
MARCH 31, 1995
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
REAL AMERICAN PROPERTIES
(a California limited partnership)
By: National Partnership Investments Corp.
a General Partner
Date: 5/17/95
-----------------------------------
By: /s/ BRUCE E. NELSON
------------------------------------
Bruce E. Nelson
President
Date: 5/17/95
-----------------------------------
By: /s/ SHAWN HORWITZ
------------------------------------
Shawn Horwitz
Executive Vice President and
Chief Financial Officer
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
PARTNERSHIP'S STATEMENTS OF EARNINGS AND BALANCE SHEETS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 545,312
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 704,667
<PP&E> 15,366,021
<DEPRECIATION> 4,326,281
<TOTAL-ASSETS> 15,618,529
<CURRENT-LIABILITIES> 1,140,375
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 781,112
<TOTAL-LIABILITY-AND-EQUITY> 15,618,529
<SALES> 0
<TOTAL-REVENUES> 173,801
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 241,509
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 234,500
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (302,208)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
